Britain selects Babcock as preferred bidder for DSG unit

LONDON, Nov 19 (Reuters) - Britain's Ministry of Defence has
named engineering contractor Babcock as the preferred
bidder for the sale of its equipment, repair and maintenance
land business.

The sale of the MoD's Defence Support Group's (DSG) land
division was expected to raise up to 300 million pounds ($470
million) for the MoD, which is under pressure to deliver
significant cost savings over the next few years.

U.S. firms KBR and General Dynamics were also
understood to have also bid for the sale of the business.

The MoD said it would retain its air business as well as its
electronics and components business unit, which will become a
new trading agency from April next year.